WACC Analysis Information

1. The WACC (discount rate) calculation for National Bank of Greece uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for National Bank of Greece over the long term. If there are any short-term differences between the industry WACC and National Bank of Greece's WACC (discount rate), then National Bank of Greece is more likely to revert to the industry WACC (discount rate) over the long term.

2. The WACC calculation uses the higher of National Bank of Greece's WACC or the risk free rate, because no investment can have a cost of capital that is better than risk free. This situation may occur if the beta is negative and National Bank of Greece uses a significant proportion of equity capital.

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